After re-booting a couple of times and still getting the same error “Server execution failed”. I thought maybe I have a virus. Then I tried this which fixed the problem straight away.

Method 2.

1. Click on Start and in the search bar type cmd.exe
2. Right click on cmd.exe and click on Run as Administrator
3. In the command prompt type the following command

net localgroup “Administrators” “NT Authority\Local Service” /add

4. Press enter and restart the computer

Ref: http://answers.microsoft.com/en-us/windows/forum